Amazon and YouLend launch flexible financing program for UK SMBs

By Gloria Methri

Amazon has launched a flexible financing program that provides businesses with access to funding linked to their sales, allowing them to repay as they earn.

Delivered in collaboration with YouLend, the merchant cash advance, will provide a new flexible financing option for eligible UK-based businesses selling on Amazon. The program offers greater cash flow flexibility in addition to the fixed-term business loans already offered by Amazon Lending.

The new financing option from YouLend has already provided over 100,000 fast, flexible financing solutions to small and medium businesses. Businesses can apply for funding from £500 up to £2 million, depending on affordability through their existing business accounts. Once accepted, sellers pay a single fixed fee with repayments tied to a percentage of their future sales on Amazon. Repayment is only required when sellers make sales, protecting them during quieter periods.

More than 100,000 UK small and medium enterprises (SMEs) and brands sell on the e-commerce platform. Through Amazon Lending, businesses now have a greater variety of financing solutions to suit their needs, whether they require greater flexibility or a fixed-term working capital loan.

Samarth Gogia, GM B2B Payments & Lending said, “We have heard from Amazon sellers in the UK how much they value fast, flexible, and accessible funding, which is why we are excited to announce a merchant cash advance that expands our range of funding options for sellers. In collaboration with YouLend, this new option will allow sellers to increase their cash flow with confidence, allowing them to make repayments based on how their business is performing.”

Jakob Pethick, Chief Commercial Officer of YouLend said, “Supporting businesses is core to our mission. That is why we are pleased to partner with Amazon to support the growth of their sellers by providing fast, flexible, and affordable financing. Amazon sellers will now be able to access revenue-based financing from YouLend to thrive and grow.”

Businesses require a minimum of three months’ trading history on Amazon before they are eligible to apply. Amazon acts as a broker presenting merchant cash advance offers to sellers via Seller Central, where sellers can check their eligibility and offers. This information is submitted to YouLend for verification and approval.